Should B.C. follow or lead on generic drug prices?

Michael Law, an assistant professor at the Centre for Health Services and Policy Research at the School of Population and Public Health at UBC, writes about the B.C. government’s decision to set the price of generic drugs at 25 per cent the equivalent brand name drug price instead of the current 35 per cent.
“There is a much simpler alternative to the proposed legislation: use competition to set prices. This is how public drug programs in New Zealand, the U.S., and a number of other countries buy generic drugs,” he writes. “Rather than arbitrary percentages, this competitive process would result in prices that truly reflect actual production and distribution costs.”
“For many generics, the government could save enough to universally cover these drugs for every person in the province free of charge. For other drugs, they could provide them at a much lower cost.”

Vancouver Sun, Fri Mar 16 2012, Page: A11, By: Michael Law, Link to full text